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Remittances and financial inclusion : evidence from El Salvador

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  • Anzoategui, Diego
  • Demirguc-Kunt, Asli
  • Peria, Maria Soledad Martinez

Abstract

This paper investigates the impact of remittances on financial inclusion. This is an important issue given recent studies showing that financial inclusion can have significant beneficial effects on households. Using household-level survey data for El Salvador, the authors examine the impact of remittances on households'use of savings and credit instruments from formal financial institutions. They find that although remittances have a positive impact on financial inclusion by promoting the use of deposit accounts, they do not have a significant and robust effect on the demand for and use of credit from formal institutions. If anything, by relaxing credit constraints, remittances might reduce the need for external financing from financial institutions, while at the same time increasing the demand for savings instruments.

Suggested Citation

  • Anzoategui, Diego & Demirguc-Kunt, Asli & Peria, Maria Soledad Martinez, 2011. "Remittances and financial inclusion : evidence from El Salvador," Policy Research Working Paper Series 5839, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5839
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    Cited by:

    1. Ggombe Kasim Munyegera & Tomoya Matsumoto, 2015. "ICT for Financial Inclusion: Mobile Money and the Financial Behavior of Rural Households in Uganda," GRIPS Discussion Papers 15-20, National Graduate Institute for Policy Studies.
    2. Carmen Hoyo & Ximena Pena & David Tuesta, 2013. "Demand factors that influence financial inclusion in Mexico: analysis of the barriers based on the ENIF survey," Working Papers 1337, BBVA Bank, Economic Research Department.
    3. repec:gam:jsusta:v:10:y:2018:i:4:p:1200-:d:141288 is not listed on IDEAS
    4. repec:eee:quaeco:v:68:y:2018:i:c:p:254-265 is not listed on IDEAS
    5. Ambrosius, Christian & Cuecuecha, Alfredo, 2016. "Remittances and the Use of Formal and Informal Financial Services," World Development, Elsevier, vol. 77(C), pages 80-98.
    6. repec:gam:jsusta:v:10:y:2018:i:4:p:1194-:d:141195 is not listed on IDEAS
    7. repec:bdr:ensayo:v:35:y:2017:i:84:p:189-202 is not listed on IDEAS
    8. repec:spr:svcbiz:v:11:y:2017:i:3:d:10.1007_s11628-016-0318-1 is not listed on IDEAS
    9. Gloria Clarissa O. Dzeha, 2016. "The decipher, theory or empirics: a review of remittance studies," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 5(2), pages 113-134.
    10. Clemens, Michael A., 2017. "Violence, Development and Migration Waves: Evidence from Central American Child Migrant Apprehensions," IZA Discussion Papers 10928, Institute for the Study of Labor (IZA).
    11. Ximena Pena & Carmen Hoyo & David Tuesta, 2014. "Determinantes de la inclusion financiera en Mexico a partir de la ENIF 2012," Working Papers 1414, BBVA Bank, Economic Research Department.
    12. Leonardo Bonilla-Mejía, 2017. "Choques externos y remesas internacionales en las regiones de Colombia," Revista Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 35(84), pages 189-202, December.
    13. Ambrosius, Christian, 2012. "Are remittances a substitute for credit? Carrying the financial burden of health shocks in national and transnational households," Discussion Papers 2012/9, Free University Berlin, School of Business & Economics.
    14. Carmen Hoyo & Ximena Pena & David Tuesta, 2013. "Factores de demanda que influyen en la Inclusion Financiera en Mexico. Analisis de las barreras a partir de la ENIF," Working Papers 1336, BBVA Bank, Economic Research Department.
    15. Jakhongir Kakhkharov, 2018. "Remittances and financial development in transition economies," Discussion Papers in Finance finance:201803, Griffith University, Department of Accounting, Finance and Economics.
    16. Ambrosius, Christian & Cuecuecha, Alfredo, 2013. "Are Remittances a Substitute for Credit? Carrying the Financial Burden of Health Shocks in National and Transnational Households," World Development, Elsevier, vol. 46(C), pages 143-152.
    17. Christian Ambrosius, 2016. "Remittances and Financial Access: Is There Really a Link and for Whom? Evidence from Mexican Household Data," The World Economy, Wiley Blackwell, vol. 39(7), pages 964-982, July.
    18. repec:aes:amfeco:v:46:y:2017:i:19:p:640 is not listed on IDEAS
    19. repec:taf:oxdevs:v:44:y:2016:i:4:p:458-478 is not listed on IDEAS
    20. Zubair, Muhammad & Bögenhold, Dieter, 2017. "Migration, Social Capital, Financial Capital: How Migrants’ Family Relations Serve Internationally," MPRA Paper 83116, University Library of Munich, Germany.
    21. Michael Clemens and Timothy N. Ogden, 2014. "Migration as a Strategy for Household Finance: A Research Agenda on Remittances, Payments, and Development- Working Paper 354," Working Papers 354, Center for Global Development.

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    Keywords

    Access to Finance; Debt Markets; Population Policies; Remittances; Economic Theory&Research;

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